When you look at the words “Finance” and “Business” what do you see? Is finance a field where people deal in money and resources for other people, or is finance a group of people who study and use financial tools to make sense out of the complicated workings of the economy and business? In order to answer this question we must first take a good hard look at exactly what it is that we mean when we say that finance is business.
Business is an extremely broad term, but at its core it is all of the activities that are needed in order for a business to be successful. These activities include business development, marketing, sales, production, and financial management. All of these things can be quite technical in nature. To make matters worse, each of these different areas is often governed by dozens of different laws and regulations. For example, business finance is often governed by securities laws that restrict how an individual or company can behave with their money. That is why managing business finance is not just complex; it can be downright confusing!
So how does finance affect a business? Without proper finance a business could go under within months because the money would simply be lost. Without the necessary tools to manage their finance properly they would fail long before they ever get anywhere. To illustrate this point you may have already heard of business loans. A business loan is used to help a business manage their money so that it can be used for their growth and expansion.
What is finance to people in other fields? Finance is used heavily in the stock market. Stock market finance includes things like making trades to buy shares of a corporation. They also deal with making trades to sell stocks to other investors. All of these are important functions of finance, but what most people aren’t aware of is that finance deals heavily with business decisions as well. A lot of the work that is involved in making stock decisions is actually done by finance.
The final area in which we will see finance working is in the world of consulting. Finance is also very heavily involved in consulting. A consultant might be managing the finances of a business or advising a business on how they should run their business. In many cases a consultant will be acting as a business’s finance manager, although this role is usually only held by experienced finance professionals.
As you can see finance can be used in a lot of different ways in the world. It can be used by individuals, businesses and even large institutions. This is all because finance is something that affects everyone in some way or another. Anyone who wants to get ahead financially needs to think about how their finance choices are affecting their financial future.